A recent class action lawsuit in California federal court alleges that Chipotle buried its Fair Credit Reporting Act ("FCRA") disclosure in its employment application, so as to allegedly render the disclosure inadequate, and the background check on which it was based unlawful. The named plaintiff in the action alleged that Chipotle placed the FCRA disclosure in the employment application and surrounded it with distracting language. However, FCRA requires that such disclosures are made in a document consisting solely of the disclosure. The plaintiff also claims that Chipotle did not provide her the required summary of her rights under FCRA and failed to provide a box to check to indicate that she wanted a copy of the background check report (a violation of California law). The lawsuit seeks recovery under both FCRA and California law. While no definitive rulings(s) have been issued, the suit is a reminder to employers that they must be vigilant about FCRA compliance when conducting background checks on which employment decisions will be based.
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